2008 for LDC in the South marks a decade of funding the growth plans of ambitious companies right across the region. As well as celebrating our success, we’re focused on continuing to build our strong presence in local communities and ensuring we continue to provide local support for aspiring management teams looking to transact their business.

Opening our first Southern office in Reading during 1998 formed a key part of LDC’s strategy to build the strongest regional network of any private equity house in the UK. In the ten years since then we’ve opened further centres in Southampton and Bristol and built a team which boasts some of the region’s most prolific, successful and highprofile
dealmakers.

These qualities have been a major factor in enabling us to invest more than £300million of equity in local businesses and over the last decade we have been privileged to work with some of the most motivated and talented management teams in the country. Recent highlights include our work with Waltham Abbeybased Apollo Group Holdings, which
was one of the most successful deals in LDC’s history. LDC’s exit from Apollo was recognised as the National Deal of the Year at the M&A Awards in February 2008.

In the last two years we have invested over £150million into eight regional businesses and been involved in deals worth over £1.5billion. In April last year we completed the £67million buyout of Tredgarbased specialist outsourcing
firm Penn Pharmaceutical Services. Since the deal, management and LDC have been focused on increasing Penn’s manufacturing capacity, expanding its international profile and maximising crossselling opportunities within the business.

The strategy has paid dividends with the firm announcing record growth over the past 12 months, increasing turnover by 40 per cent and creating 43 new jobs.  Whilst our track record and reputation for delivery is second to none, we’re not resting on our laurels. After a record breaking 2006 and 2007 we’re continuing to build and strengthen our presence in the South’s key corporate finance centres. LDC is firmly committed to working closely with the professional, business and wider communities to ensure we carry on making a positive impact across the region.

LDC continues to be one of the most active private equity houses in the South, backing ambitious management teams seeking between £2million and £100million of equity. This was recognised in February 2008 when the team scooped the Private Equity Firm of the Year title at the South East Insider Dealmakers Awards for the second year running. In the same month we supported the £27million management buyout of Davies Chartered Loss Adjusters, one of the UK’s largest providers of loss adjusting and associated claims services to the insurance industry.

Established in 1968, the business employs around 400 people and delivers a comprehensive range of claims and fulfillment services through a network of 33 regional offices. Since the transaction we’ve been working with anagement on the continuing development of new specialist products and services that respond to the changing needs of Davies’ clients and the wider insurance industry. Our investment in specialist fund EpiV is also proving to be a huge success.
We committed £50million to the fund which is investing between £2million and10million of equity in emerging technology and service companies in the international upstream oil & gas services sector.

The EpiV team has completed a host of deals including a £3million investment in Aberdeenbased Brinker Technology, a business which uses a unique and patented particlebased technology to remotely locate and seal leaks in production and pipeline infrastructure. And just last month it invested £5million in Guardian Global Technology, a Welsh business which designs and manufactures specialist downhole hydrocarbon logging tools and associated services.

The outlook for South during the remainder of the year is good. There is a stream of high quality firms coming to the market and a strong, vibrant banking and professional services community in the South to support transactions.

In 2007 we boosted our investment team in the region with the appointment of Adrian Willetts, James Austin and Richard Stewart, three individuals with significant experience in the region’s corporate finance community. This process has continued in 2008 with a major focus on further strengthening our presence in the South West and South Wales market.

In January we appointed one of the region’s most successful dealmakers, Paul Oldham, as a Director. Paul had previously built and led Grant Thornton Corporate Finance’s eightstrong regional corporate finance lead advisory team and spent 13 years at 3i, heading up the firm’s Bristol and Cardiff offices. His 19 year career in private equity has seen him work on over 50 successful transactions including 3i’s £30million buyout of Swindon-based Early Learning Centre and the sales of Bristol-based confectioner Elizabeth Shaw and bioscience firm Tocris Cookson.

In May we announced that Paul was to be joined by investment director Ian Podmore. Ian joins from Ernst & Young where he worked within the private equity team advising on a variety of midmarket transactions including the MBO of Space Cooling Ltd and Bathbased IPL plc. And to provide a further boost to our South West presence, in July we are set to move our Bristol office into new premises in Temple Quay the heart of the South West’s corporate finance  community.

This recent rapid expansion means that LDC now boasts a 13strong investment team in the South providing us with unparalleled private equity experience, expertise and links into the local market.

LDC is firmly focused on ensuring private equity continues to plays an important role the region’s economic landscape by generating growth and creating jobs. However we are aware it is also our responsibility as a local business to play a wider role in the vibrant local communities where we work. So, for the second year running we’ve organised for a 60strong group of financiers and advisors to spend a day carrying out essential maintenance work at Camp Mohawk, a day care charity which provides activities for disabled children over the summer holidays.

We also continue to support a range of local and national charities through our annual LDC Charity Quiz. Taking place simultaneously at six venues across the UK, over 140 teams fought it out to be crowned the winner. With each team donating £500 to participate the 2007 quiz raised a staggering £105,000 a figure which we are looking, with your help, to surpass this in 2008.

As Kevan Leggett, managing director for the South, summarises: "We recognise that our success has been achieved with the help of advisers, lawyers, banks and companies operating in the region and would like to place on record our thanks to you all."

LDC Notes to Editors:

LDC (Lloyds TSB Development Capital) is part of the Lloyds Banking Group and is authorised and regulated by the Financial Services Authority. LDC has, since 1981, completed over 400 investments, has ongoing interests in over 60 businesses across the UK. LDC back ambitious management teams from UK-based companies seeking between £2m and £100m of equity for management buy-outs, institutional buy-outs or development capital transactions. LDC invests in a broad range of sectors and has particular experience in financial services, healthcare, industrials, IT & software, leisure & media, retail & consumer, and support services.